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Building Capability

What Are the Benefits of Embedding Learning with Performance Management when Building Organisational Capabilities?

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Performance management is an ongoing practice of improving your employees’ performance through goal-setting, planned performance and performance reviews. To be effective, performance management should provide learning opportunities to enable employees to develop capabilities and meet business objectives. 

What are the benefits of embedding learning with performance management when building organisational capabilities? 

Embedding learning with performance management in your workforce allows your performance management—and its effect on building organisational capability—to thrive. 

Shows training needs 

With frequent performance reviews, you’ll be able to see your organisation’s training requirements. You’ll be able to see your employees’ current skillsets, but you’ll also be able to see what skills they may be lacking in, or which skillsets need to be updated to match industry trends. Tie this back to your organisational capabilities to marry them up and train for performance.  

Highlights future leaders 

You’ll be able to see which of your employees have the right capabilities needed for leadership. It will help highlight which emerging leaders embody the organisational capabilities you need represented. Remember, leadership is built on specific capabilities, not a bag of technical skills. 

Increased retention and morale 

With regular feedback on performance, continuous learning and a clear idea of career progression, your employees are going to have increased morale in the workplace. They’ll know what they need to do, when, and how well they’re achieving their goals. Constant training in capabilities to assist their career growth is also more likely to lead to staff retention. 

The challenges of embedding learning with performance management when building organisational capability 

Embedding learning with performance management in a way that effectively builds organisational capability isn’t easy, though. There are some challenges that you might face while you develop your performance management system. As a starting point, performance management has always been considered as its own standalone thing. Shifting to alignment with building organisational capability starts with you and your team shifting your mental model. Let’s get stuck into some more challenges: 

Unclear goals 

Without an idea of what targets your employees are supposed to meet in terms of their learning, they won’t be able to improve on their current capabilities or will develop unneeded ones. With no improvement in the right direction, performance management fails. 

Bad metrics 

Your metrics needs to be supportive and relevant to your performance goals. If employees aren’t getting an accurate idea of how their performance is on track to meet targets, they could feel disincentivised. 

No feedback, no accountability 

You need to give your employees regular feedback on their performance to ensure they’re on the right track. But like just your performance metrics, you need to make sure your feedback is actually relevant to your organisational capabilities and business strategy. Without a clear idea of how they’re performing, your employees will be unable to hold themselves accountable in terms of their learning. 

The impacts of not embedding learning with performance management 

The moment your performance management no longer includes embedded learning, it ceases to be performance management. 

Learning is an essential part of performance. It’s not enough to just know how to do, because industry trends are constantly changing in the face of new technologies and processes. The environment your business exist in will change, and your business objectives will change as a result. And, to meet those strategic goals, your company’s organisational capabilities will have to change as well. Without learning, those metrics that signify “good” performance become redundant, and fast.

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